US, China Continue Trade Talks in Sweden Seeking Tariff Truce Extension

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are engaged in a second day of talks in Stockholm to resolve ongoing trade issues and potentially extend the current 90-day tariff truce set to expire in mid-August. These discussions, held behind closed doors with no public statements, aim to maintain trade ties while addressing broader economic security concerns such as export controls and issues related to sanctioned oil purchases. While previous tariff escalations in April caused significant market disruptions, both sides have since agreed to a temporary pause and are showing pragmatic engagement, though a breakthrough deal remains uncertain. Analysts expect at least an extension of the current, reduced tariff levels rather than a full resolution, with China accepting higher tariffs and the U.S. cautious to avoid further supply chain disruptions, such as on rare earth exports. The talks may also lay groundwork for a potential meeting between U.S. President Donald Trump and Chinese leader Xi Jinping later this year. Swedish Prime Minister Ulf Kristersson has also been involved, meeting with U.S. officials during the discussions to support diplomatic efforts.